The United States has moved to roll back export restrictions on China for chip-design software and ethane shipments, marking one of the clearest signs yet of easing tensions between the world’s two largest economies following months of retaliatory trade measures.
Three of the dominant players in electronic design automation (EDA) software Synopsys, Cadence Design Systems and Siemens confirmed on Wednesday that they are reinstating access for Chinese customers after receiving word that U.S. export controls affecting their products had been withdrawn.
The decision came as the U.S. government separately notified ethane producers that it would rescind licensing requirements imposed earlier this year, effectively reopening shipments that had been tightly restricted since late May and June.
The curbs on EDA tools and ethane were part of a broader set of countermeasures introduced by the Trump administration after China suspended exports of rare earths and related magnets in April. Beijing’s move widely viewed as retaliation for earlier U.S. tariffs sent shockwaves through supply chains vital to the automotive, aerospace, semiconductor and defense industries. The rare earths standoff had raised concerns that it could derail negotiations on a broader trade agreement.
On Friday, China’s commerce ministry said that both sides had reached a preliminary framework under which Beijing will resume reviewing export applications for controlled materials while Washington will roll back corresponding restrictions. The ministry described the understanding as a step toward stabilizing a volatile trade relationship.
A source familiar with internal U.S. government discussions said Washington’s strategy was to increase pressure in order to force movement from Beijing. “The U.S. escalated to de-escalate,” the source said, noting that Washington imposed wide-ranging restrictions “to get the Chinese to back off on rare earths.” The source added that if both sides continue to adhere to the framework, “we’re going to see a lot of these restrictions go away back to where things were in February or March.”
Siemens said in a statement that it had been informed by the U.S. Commerce Department that the export controls affecting its Chinese customers were no longer active, allowing the company to resume full sales and support. Its shares rose 1.7% after markets opened on Thursday.
Synopsys told employees in an internal letter seen by Reuters that it expects to complete technical updates restoring access for Chinese clients within three business days. Cadence also confirmed the reinstatement of services.
The U.S. Commerce Department did not immediately respond to requests for comment.
Analysts have warned that prolonged restrictions on EDA tools essential for designing advanced semiconductors would have severely constrained China’s chip ecosystem. Together, Synopsys, Cadence and Siemens account for more than 70% of China’s EDA market, according to Chinese state media.
It remains unclear whether Washington will lift other measures introduced during the rare earths dispute. These include the suspension of licenses for GE Aerospace to supply engines for China’s C919 airliner, along with restrictions affecting U.S. nuclear equipment sales to Chinese power plants.
This article was first published on Reuters
